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Sen. Marsha Blackburn responds to the Congressional Budget Office's report on the Build Back Better Act.

The Build Back Better Act, a sweeping $1.9 trillion bill aimed at improving the United States' social safety nets, saw the Congressional Budget Office (CBO) Thursday conclude that the bill would increase the country's deficit by $367 billion over a 10-year period.

Following the CBO's report, Sen. Marsha Blackburn labeled the bill as the "build back broke agenda," and called the provisions included in the bill "socialist programs."

What's in the Build Back Better Act

Included in the bill is a universal pre-K program for 3- and 4-year-olds, which would affect an estimated six million children. The program would be funded for six years at an estimated cost of $400 billion.

Also included is an extension of the enhanced child tax credit; with an estimated cost of $200 billion, the program delivers monthly payments to parents based on the number of children they have.

Medicare would also be expanded to include hearing, as would access to health care through offering Affordable Care Act tax credits toward eligible Americans.

Included in the bill is also a significant investment on expanding affordable housing, which includes the construction of new affordable housing, as well as down-payment assistance for first-generation homebuyers.

The most costly inclusions in the bill are clean energy and climate investments. At an estimated cost of $555 billion, investments would include consumer rebates and credits for Americans who invest in renewable energy sources and electric vehicles, large investments into wind and solar and significant work in coastal restoration, forest management and soil conservation.

A more controversial inclusion is the cap removal of the state and local tax (SALT) deduction, which allows for taxpayers to deduct taxes paid to local and state governments from income, property or sales taxes.

Currently, those who take advantage of the program are limited to deducting a maximum of $10,000 a year using the SALT deduction. Were the cap removed, critics argue that the vast majority of benefits would go toward the wealthiest of Americans.

Estimated to cost $475 billion in lost taxes over five years, the Committee for a Responsible Federal Budget estimates that roughly $400 billion would go to the richest 5% of Americans, that threshold being a household income of at least $273,850.

Provisions that were once in the bill but have been cut include two years' worth of free community college, the ability for the U.S. government to freely negotiate lower drug prices and paid family and medical leave.

The White House argues that the bill is paid for in its entirety through new minimum corporate tax rates on large corporations, taxes on stock buybacks and enhanced IRS enforcements.

While the CBO's report concluded that the bill may create a deficit of $367 billion over 10 years, the White House has, however, stood by its position that the bill will be paid for through its offsets.

Blackburn responds

"To make this build back broke agenda fit the $1.75 trillion mark, they have shortened the length of many of these programs so that they can get these socialist programs on the books," Blackburn said.

While often misused today, the term socialism only refers to an economic philosophy that advocates for the collective ownership of the means of production, and does not bear a connection with social safety programs like universal childcare or expanded health care.

"Also, their claim that this is all paid for is proving not to be true," Blackburn said. "We know initially, they're looking at a $367 billion deficit - that is your tax money that your children are going to have to pay back."